Category Archives: H-M

Futures

Definition Futures Contracts are a standardized, transferable legal agreement to make or take delivery of a specified amount of a certain commodity, currency, or an asset at the end of specified time frame. The price is determined when the agreement is made. Here are some useful terms for futures: Contract Size: This specifies the number Read More…

Hedge Fund

A hedge fund is one of the investment tools you will aspire toward as a serious investor. The first hedge fund came out in 1949 as a strategy to neutralize the effect of overall market movements on a portfolio.

Horizontal Integration

The merger of companies at the same stage of production in the same or different industries. When the products of both companies are similar, it is a merger of competitors. When all producers of a good or service in a market merge, it is the creation of a monopoly. If only a few competitors remain, Read More…

Hyperinflation

Hyperinflation refers to out of control or extremely rapid inflation, where prices increase so quickly that the concept of real inflation becomes meaningless. The classical definition of hyperinflation is inflation greater than 50% per month. Recently, Argentina, Brazil and Peru (1989-90) all experienced hyperinflation. Perhaps the most well known example of hyperinflation occurred in Germany Read More…

Incentives

Definition Economic Incentives includes anything that pushes people, businesses, and governments to do one thing or another. This includes what products you buy, what career you choose, what products businesses produce, and what government programs are put in place. Incentives for Individuals Each individual faces many economic incentives every day. If you are in school, Read More…

Income Statement

Definition: The Income Statement is one of the financial statements that all publicly traded companies share with their investors. The income statement shows the company’s sales, expenses, and net profit (or loss) over a period of time–usually 3 months, year-to-date, and twelve months. The income statement also comes with a lot of notes and discussions Read More…

Inflation

Inflation refers to the general rising of prices for goods and services in the economy, due to an increase in the amount of money and/or credit available.